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Patent law reform: Bundestag introduces principle of proportionality

The new patent law adopted last Friday in Germany puts a stop to the use of injunctive relief by Patent Assertion Entities (PAEs). “We also welcome the German parliament’s diligent effort in the context of the new law to explicitly proscribe the practice of Patent Assertion Entities (also known as patent trolls) who acquire patents purely for the purpose of extorting excessive settlements under the threat of an impending injunction.”, told Ludwig von Reiche, IP2Innovate's board member, JUVE Patent. 

 

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IP2Innovate welcomes the call by CDU/CSU to introduce a proportionality test in the German Patent Act to better protect innovators against patent trolls

In a recent  the German Conservatives (CDU/CSU) Elisabeth Winkelmeier-Becker and Ingmar Jung express concerns over abusive litigation practices by patent trolls, which distort the market and undermine Germany’s attractiveness as a business location. They note that in light of the high complexity of modern products, companies can no longer completely rule out the possibility of patent infringements. In this context, an unlimited right to injunctive relief create unwarranted leverage for patent trolls who buy up patents only to assert them against companies and extract disproportionately high settlements. Solutions proposed by CDU/CSU are the introduction of a proportionality test in the German Patent Act as well as a synchronisation of infringement and nullity proceedings.
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Contrary to EU law, courts across Europe consistently fail to consider proportionality in patent cases, new data reveals

BRUSSELS, 25 November 2021 – Between 2018 and 2020, courts in nine EU member states plus the UK and Norway, handed out injunctions automatically in 98% of patent cases in which an infringement was found, according to data sourced from Darts-ip, a Clarivate IP intelligence solution.
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IP2Innovate statement on the European Commission’s plans to propose a new regulation governing SEP licensing

BRUSSELS, 5 April 2023 – According to news reports last week the European Commission’s planned proposal for a Regulation on standard essential patents (SEPs) will tackle deep-rooted problems such as the lack of transparency and predictability in SEP licensing. IP2Innovate looks forward to reading the official proposal in the coming weeks.
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